By Kelly Townsend

This story originally ran on Kidscreen’s sister publication, Playback.

The Shaw Rocket Fund, Canada’s only dedicated fund for kids content, has been effectively defunded after the Canadian Radio-television and Telecommunications Commission (CRTC) ruled that telecoms giant Rogers Communications will not be required to continue its financial contributions to the fund.

The decision, issued Thursday, states that Rogers’ requirement to allocate half of its Certified Independent Production Fund (CIPF) contributions to SRF expired with its prior broadcast licence on Aug. 31, despite the fact that the licence was given an administrative renewal.

The SRF paused its funding programs last year after the Rogers contributions ceased, since the telecom was the fund’s primary source of revenue. And while the SRF has been separately approved for contributions under the country’s requirement that foreign-owned streamers must contribute to the local industry, those payments are in limbo while the contributions order is being reviewed at the Federal Court of Appeal.

The SRF had filed an appeal last August, arguing to the CRTC that Rogers had misinterpreted the CRTC’s order in the Shaw merger regarding tangible benefits, and that an administrative renewal meant that its tangible benefits requirements would continue into the new term, which ends on Aug. 31 this year. In its ruling, the CRTC concluded that the administrative renewal did not extend the tangible benefits order, which was designed to be “temporary in nature.”

The CRTC also disagreed with another argument from the SRF that, since Rogers’ funding obligation is a matter of public interest, there should have been a public hearing. The commission concluded that the expiration of a direction does not constitute a licence amendment, and therefore it was not required to assess the need for a public hearing.

“We are deeply disappointed by the decision and the effect it will have on the Canadian children’s media sector,” said SRF president and CEO Agnes Augustin in a statement to Playback Daily. “While we acknowledge the commission’s position, which differs from our own, this decision not only impacts an important additional year of funding for this essential sector, particularly critical at this time, but also affects the right to a public proceeding. We will continue to fight for the Canadian and Indigenous children’s and youth media sector.”

SRF chair Christine Shipton added: “We were hoping for a different decision, as we feel we had a strong case for Rogers to continue contributing to the Rocket Fund. We will continue to advocate for change in the industry to ensure that kids’ content is protected as policies in the media sector evolve.”

Rogers did not provide a comment at press time.

Photo courtesy of Jason Hafso via Unsplash.